Health & Fitness
Health and Fitness
Health and Fitness 
Mon, May 16, 2011
LOS ANGELES--([ BUSINESS WIRE ])--Catasys, Inc. (OTCBB: CATS) announced today its financial and operational results for the three months ended March 31, 2011.
"With two contracts announced this year, we anticipate that the successes with these plans will continue to drive increasing adoption of OnTrak throughout the balance of the year."
Quarterly Highlights:
- Announced a multiyear agreement with Coventry Health Care of Kansas, Inc., a subsidiary of Coventry Health Care, Inc., to provide OnTrak to the health plana™s commercial and Medicare Advantage populations. The program is expected to commence enrollment in the second quarter 2011.
- Entered into a multi-year agreement with Fallon Community Health Plan to provide OnTrak to its commercial population.
- Improved Balance Sheet by converting $5.8M of debt associated with the Companya™s November 2010 financing to equity. After this conversion the Company does not have any debt.
- Changed name from Hythiam, Inc. to Catasys, Inc. and its ticker symbol to CATS to better reflect the Companya™s focus on providing and expanding its OnTraka" integrated substance dependence solution to health plans and their membership throughout the US.
Financial Highlights:
- Decreased net loss from continuing operations before provision for income taxes by $1.2 million during the three months ended March 31, 2011 to a net loss of $2M from a net loss of $3.2M during the three months ended March 31, 2010. Compared to the same period in 2010, primarily due to the decrease in operating expenses, resulting mainly from actions to streamline the Company's operations and a reduction in the fair value of warrant liability.
- Reduced quarterly cash utilization by roughly $700,000 or 25%. As of March 31, 2011, the Company had cash and cash equivalents of $2.6M.
aWe recently launched our OnTrak program in Nevada, and anticipate launching with Coventry Health Care of Kansas in the second quarter, which we expect to generate increasing revenue from our integrated substance abuse program through the rest of the year. We are working with Fallon Community Health Plan to implement our program in Massachusetts and anticipate it will closely follow the launch in Kansas,a said Rick Anderson, President & COO of Catasys. aWith two contracts announced this year, we anticipate that the successes with these plans will continue to drive increasing adoption of OnTrak throughout the balance of the year.a
About Catasys®
Catasys, Inc. provides specialized behavioral health management services to health plans, employers and unions through a network of licensed and company managed health care providers. The Catasys substance dependence program was designed to address substance dependence as a chronic disease. The program seeks to lower costs and improve member health through the delivery of integrated medical and psychosocial interventions in combination with long term care coaching, including their proprietary treatment program for alcoholism and stimulant dependence. For further information, please visit [ www.catasyshealth.com ].
Forward-Looking Statements
Except for statements of historical fact, the matters discussed in this press release are forward looking and made pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements reflect numerous assumptions and involve a variety of risks and uncertainties, many of which are beyond the company's control that may cause actual results to differ materially from stated expectations. These risk factors include, among others, changes in regulations or issuance of new regulations or interpretations, limited operating history and lack of outcomes and statistically significant formal research studies, difficulty enrolling members in our programs, the risk that treatment programs might not be effective, difficulty in developing, exploiting and protecting proprietary technologies, intense competition and substantial regulation in the health care industry; and additional risks factors as discussed in the reports filed by the company with the Securities and Exchange Commission, which are available on its website at [ http://www.sec.gov ].